Republic First Bancorp cuts jobs in preparation to exit mortgage business

Republic First Bancorp

05/05/2023 15:00

May 5 (Reuters) - Republic First Bancorp  FRBK.O  said
on Friday it cut jobs in its commercial lending unit as the
lender prepares to exit its mortgage origination business.
    The Philadelphia-based regional bank said high costs of
running a mortgage origination platform were not allowing it to
improve its profitability and sharpen focus on core businesses.
    The layoffs will affect employees of its lending and credit
teams in New York, the bank said. 
    Major U.S. lender Wells Fargo & Co  WFC.N  also said in
January it would slim down its mortgage business.
    Deposit balances at Republic First fell 2.7% in the first
quarter, but grew between March 31 and April 30, the company
reported earlier this week.
    Deposits at regional banks have come under investor scrutiny
after a crisis hit the banking sector, after two U.S. regional
lenders collapsed in March. 
    
    

 (Reporting by Siddarth S in Bengaluru; Editing by Shinjini
Ganguli)
 ((Siddarth.s@thomsonreuters.com;))